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Which of the Following Are Needed to Determine the Number

question 38

Multiple Choice

Which of the following are needed to determine the number of stock index futures required to cross-hedge a stock portfolio?
I. standard deviation of the stock portfolio
II. beta of the stock portfolio
III. value of the index futures contract
IV. value of the stock portfolio


Definitions:

Topographic Model

A Freudian concept dividing the psyche into the conscious, preconscious, and unconscious.

Conscious

In Freud’s topographic model, the part of personality that contains the thoughts we are currently aware of.

Preconscious

Pertaining to thoughts and feelings not immediately in consciousness but can be readily brought to mind.

Time Magazine

An American weekly news magazine known for its influential coverage of world events, politics, and culture.

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